The shares of this microcap company surged around 9 percent in Monday’s trading session after receiving international order worth Rs. 26 crores.
Price Movement:
With a market capitalization of Rs. 52.9 crores, the shares of Vivanta Industries Ltd started Monday’s trading session on a higher note at Rs. 4.19 compared to its previous close of Rs. 3.86. During the trading session, the shares hit a high of Rs. 4.27, gaining around 9 percent and are currently trading at Rs. 4.18 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it had received a contract from an international entity for the procurement of Medicines, Machines and Technology worth Rs. 26 crores and the orders are to be executed six months starting from September 2024.
Financials:
Looking at the company’s financial statements, the revenue zoomed by around 50 percent from Rs. 24.79 crores during FY22-23 to Rs. 37.24 crores in FY23-24. On the other hand, the net profits declined by 28 percent from Rs. 1.30 crores to Rs. 93 lakhs.
Drone Segment:
In September 2023, Vivanta Industries entered into a Memorandum of Understanding (MOU) with Vivanta Drone Research Centre Tanzania Ltd (VDRCTL).
This partnership involves acquiring a 50 percent stake in VDRCTL, which will facilitate the establishment of an assembly line and research and development (R&D) for drones. This move is aimed at tapping into the growing business opportunities in Africa.
EV segment:
Previously, the company ventured into new verticals including drones, Information Technology, AI and Robotics, and Charging stations for electric vehicles.
Further, in April 2023, the company received a work order amounting to USD 5 million from the Electric Vehicle Organizational Centre North America Corporation (EVOCNA) for establishing an EV charging and manufacturing unit.
Moreover, the company announced a plan to Establish/ Assemble/ Install /Reinstall Electric Vehicle (EV) Charging Stations in and across Gujarat and aims to facilitate the adoption of electric vehicles by establishing a network of EV charging stations.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 5.51 percent and a return on capital employed (RoCE) of 3.75 percent for the period spanning FY23-24. Additionally, during the same period, the net profit margin stood at 2.48 percent.
Company Profile:
Vivanta Industries Limited (VIL) is a civil construction and engineering company based in Ahmedabad, India, specializing in providing comprehensive turnkey project solutions. The company has also ventured into next-generation technologies, including drone services, electric vehicle charging stations, and artificial intelligence.
Written By Vaibhav Patil
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